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Item 8BCITY OF SOUTHLAKE MEMORANDUM October 15, 2013 To: Shana Yelverton, City Manager From: Alicia Richardson, City Secretary Item 86 Subject: Resolution No. 13-041, support constitutional amendment proposition 6, providing for creation of the State Water Implementation Fund and the State Water Implementation Revenue Fund. Action Requested: Consider Resolution No. 13-041. Background Information: The Texas Legislature, during their 83rd Regular Session approved ten joint resolutions proposing nine particular constitutional amendments to be considered by the voters. Pursuant to Section 3.003 of the Texas Election Code, Governor Rick Perry ordered a special election to be held throughout the State of Texas on November 5, 2013 to consider the proposed constitutional amendments. A copy of the proclamation ordering the special election is attached hereto. Proposition No. 6 — SJR 1 would create the State Water Implementation Fund as a special fund inside the state treasury and outside the General Revenue Fund. Money in the fund would be administered by the Texas Water Development Board (TWDB) and would be used to implement the state water plan, as adopted by general law, by TWDB. The proposed amendment will appear on the ballot as follows: "The constitutional amendment providing for the creation of the State Water Implementation Fund for Texas and the State Water Implementation Revenue Fund for Texas to assist in the financing of priority projects in the state water plan to ensure the availability of adequate water resources." Financial Considerations: Non -applicable Strategic Link: Non -applicable Citizen Input/ Board Review: Non -applicable Legal Review: Non -applicable Alternatives: None Supporting Documents: Resolution No. 13-041 Governor Proclamation Staff Recommendation: To discuss and consider Resolution No. 13-041. RESOLUTION NO. 13-041 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, SUPPORTING CONSTITUTIONAL AMENDMENT PROPOSITION 6, PROVIDING FOR THE CREATION OF THE STATE WATER IMPLEMENTATION REVENUE FUND FOR TEXAS TO SUPPORT LONG- RANGE WATER SUPPLY AND CONVERSATION PROJECTS STATEWIDE AND PROVIDING AN EFFECTIVE DATE. WHEREAS, North Texas's population will grow by 82 percent by 2060, bringing tremendous economic opportunity to the North Texas region in the form of vibrant commerce, innovative industry, and a diverse workforce; and WHEREAS, the Texas Water Development Board projects that by 2060 the state's currently existing water supply with shrink by 10 percent while water demand will grow by 22 percent; and WHEREAS, over 87 percent of Texas is currently in drought and the state's reservoirs are only 60 percent full; and WHEREAS, unless Texas fully implements its State Water Plan by 2060, half of the state will lack an adequate supply of water during times of drought; and WHEREAS, from manufacturing to agriculture, all sectors of Texas's economy depend on water to keep functioning; and WHEREAS, should Texas befall another catastrophic drought comparable to that of 2011, the state could face up to $116 billion in economic damage and lose 1.1 million jobs; and WHEREAS, the proposed constitutional amendment is the keystone to a comprehensive and historic package of water -related legislation passed by the 83rd Texas Legislature that will provide for our state's water needs in a sustainable and fiscally responsible manner; and WHEREAS, the proposed constitutional amendment will provide for the creation of the State Water Implementation Fund for Texas, a water infrastructure development bank that will make loans to local water authorities to finance water supply and conservation projects identified in the State Water Plan; and WHEREAS, upon repayment, loans issued through the proposed water infrastructure development bank will revolve back into the fund on an "evergreen" basis to support more projects; and WHEREAS, the proposed constitutional amendment allows for an initial $2 billion capitalization of the water infrastructure development bank drawn from the state's Economic Stabilization Fund; and WHEREAS, without the successful passage of this constitutional amendment, the aforementioned package of water legislation will be rendered void, placing the state in serious risk of economic hardship due to insufficient water resources. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, THAT: Section 1. The City Council supports the passage of Proposition 6 that will ensure the state is able to develop an adequate water supply in a fiscally responsible manner that will provide water for generations to come. Section 2. This resolution is hereby effective upon passage and approval by the City Council. PASSED AND APPROVED THIS THE 151" DAY OF October 2013. CITY OF SOUTHLAKE, TEXAS John C. Terrell Mayor ATTEST: Alicia Richardson, TRMC City Secretary